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Business Plan Document Transcript

  • 1. Marketing/Business Plan Consolidated Version of: Market Requirements Document Product Requirements Document Marketing Plan Document Product Positioning Document Company Name: Land of the Bread Team Number: F4 Product/Team Name : Team Members: • Cholda Techamani • JiHee Jang • Seneca Tsai • Rahul Masand • Tricia Rose • Qian Liu
  • 2. Krannert School of Management Business Management 324 Table of Contents 1. Introduction.......................................................................................................................................1 2. Business Overview...........................................................................................................................1 2.1. Business Mission (Unit 4).........................................................................................................1 2.2. Business Objectives (Unit 4).....................................................................................................1 3. Marketing Requirements..................................................................................................................2 3.1. Target Market Profile................................................................................................................2 3.1.1 Overall Market Description (Unit 6) ..................................................................................2 3.1.2 Market Problem (Unit 6, Unit 6 Validation) ......................................................................3 3.1.3 5C Analysis (Unit 5 Qualitative, Unit 6 Quantitative) ......................................................3 3.1.4 SWOT Analysis (Unit 4) ....................................................................................................6 3.2. Customer Profile........................................................................................................................6 3.2.1 Customer Needs, Wants and Demands (Unit 7).................................................................6 3.2.2 Customer Use Behaviors and Characteristics (Unit 7).......................................................7 3.2.3 Value Chain (Unit 9)...........................................................................................................8 3.2.4 Consumer Choice Process (Unit 9).....................................................................................8 3.3. Target Market Segment.............................................................................................................9 3.3.1 2X2 Segmentation Analysis (Unit 10)................................................................................9 3.3.2 Target Customer Profile (Unit 10) ...................................................................................11 3.3.3 Customer Use Case (Unit9)..............................................................................................11 4. Positioning......................................................................................................................................12 4.1. Current Customer Perceptions (Unit 7)...................................................................................12 4.2. Value Proposition....................................................................................................................13 4.2.1 Value Proposition (Unit 8) ...............................................................................................13 4.2.2 Unique Selling Proposition (Unit 12)...............................................................................13 4.2.3 Price / Performance Value Map (Unit 8)..........................................................................13 4.2.4 Customer LTV analysis (Unit 8).......................................................................................15 4.3. Product Positioning ................................................................................................................15 4.3.1 Positioning Statement (Unit 12)........................................................................................15 4.3.2 2X2 Product Perceptual Map (Unit 12) ...........................................................................15 4.3.3 Product Feature Radar Map (Unit 12)..............................................................................16 5. Marketing Plan................................................................................................................................17 5.1. Marketing Objectives (Unit 4)................................................................................................17 5.2. Marketing Strategies................................................................................................................18 5.2.1 BCG Matrix (Unit 4).........................................................................................................18 5.2.2 Product-Market Growth Matrix (Unit 4)..........................................................................18 5.2.3 .....................................................................................................................................................18 5.2.5 Brand Strategy (Unit 11)...................................................................................................18 5.3. Marketing Tactics ...................................................................................................................19 5.3.1 Product Overview (Unit 3)................................................................................................19 5.3.1.1 Product Lifecycle and Roadmap (Unit 3)..................................................................19 5.3.1.2 Product Requirements (Unit 11)................................................................................22 5.3.1.3 Product Packaging (11) .............................................................................................23 5.3.1.4 Product Launch Strategy (Unit 3)..............................................................................24 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 ii Based on Sample Marketing Documents by 280Group.com
  • 3. Krannert School of Management Business Management 324 5.3.1.5 Product End-of-Life Strategy (Unit 3).......................................................................24 5.3.2 Pricing ...............................................................................................................................25 5.3.2.1 Product Demand Curve (Unit 13)..............................................................................25 5.3.2.2 Pricing Strategy and Price Functions (Unit 13).........................................................26 5.3.3 Promotion .........................................................................................................................27 5.3.3.1 Commercial (End Of Course)....................................................................................27 5.3.3.2 Product Pitch (End of Course)...................................................................................27 5.3.4 Place Overview..................................................................................................................27 5.3.4.1 Distribution Channel (unit 14)...................................................................................27 5.4. Forecasts and Success Measures.............................................................................................27 5.4.1 Sales and Profit Forecasts (Unit 13).................................................................................27 5.4.2 Marketing and Financial Success Measures (Unit 13).....................................................28 6. Appendix A.....................................................................................................................................30 Very Important...............................................................................................................................31 Somewhat Important......................................................................................................................31 Neutral............................................................................................................................................31 Not Important.................................................................................................................................31 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 iii Based on Sample Marketing Documents by 280Group.com
  • 4. Krannert School of Management Business Management 324 1. Introduction 2. Business Overview 2.1.Business Mission (Unit 4) Our mission is to provide fresh baked goods from every corner of the world including an immense variety of specialty breads, cheeses, and sweets creating a unique dining alternative for Purdue students. 2.2.Business Objectives (Unit 4) 1. To achieve financial sustainability within the first year of operations ending December 31. 2. To reach a market share of 7% during the first fiscal year. 3. To implement an integrative method of waste management that will reduce waste and associated costs as a percentage of yearly expenses by 5%. 2.3. Tactical Objectives-Marketing Mix (Unit 4) 1. Product Goal Our goal is to provide high quality, fresh, homemade diversity of baked goods including a variety of specialty breads, cheeses, and sweets for Purdue students, faculties and community members. Our product line does not only offers a taste of home for international students by providing a mix of fresh specialty goods from many countries around the world but also offers a unique place for students, faculty and community members to taste the fresh specialty goods that they have never tried from other bakeries before. To attract customers and achieve the safety standard, we will hire an expert in making bread and sweets to baked goods that we consider unique and delicious. We will also control the freshness and cleanliness of all the ingredients and products that we make. 2. Pricing Goal Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 1 Based on Sample Marketing Documents by 280Group.com
  • 5. Krannert School of Management Business Management 324 In order to serve students, faculty and community members, every product of “Land of the Bread” should be affordable. The price of almost every product will be set equal to other bakeries around West Lafayette and Lafayette areas. However, we will also sell the products which might cost slightly more than other bakeries due to the cost of that product’s ingredients and the difficulty in making to people who are willing to pay higher price for the best quality goods. When our business becomes steady, we will offer a membership card which offers a small sale discount for Purdue students who visit our bakery regularly. Then, when our business starts to decline, we will offer a sale discount for customers in general and offer a discount coupon for new Purdue students at the beginning of every semester. 3. Promotion Goal To promote our new opening store ‘Land of the Bread’, we will have a weeklong tasting to sample the variety of our breads, cheeses, and sweets to attract customers. During the beginning of the fall semester 2009, we will expand our advertising to the Exponent during the first weeks of school and on local radio stations. We will also provide the sample amounts of our products to Purdue students, faculty, recruiters, alumni, family, and community members during many big events that occur around campus such as Career Fairs, Family Weekend and Football game. 4. Placement Goal We will sell the products directly to the customers. We understand that many students do not have an access to cars. Thus, our location will be located near Purdue campus (North Chauncey area) so that students can buy our product easily. 3. Marketing Requirements 3.1.Target Market Profile 3.1.1Overall Market Description (Unit 6) The target market initially for “Land of the Breads” bakery would be college students’ on the campus of Purdue University, with an age group of 16-30 years old and a disposable income of less than $30,000. Purdue University campus has approximately 40,000 students who belong to that particular age group Most of the consumers in the target market would have tight budgets. They would be conservative at spending as a lot of them are college students with part time jobs, making it difficult for them to spend lavishly. The bakery would have mostly foot traffic as majority of student population live on campus. This would help us not worry too much about parking spots for cars. The benefits these students will get would be getting a chance to taste breads from all over the world and have a truly global experience. During lunch time, people would be coming more likely to get desserts and some breads & cheeses. There would be heavy traffic during the evening as most people would get Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 2 Based on Sample Marketing Documents by 280Group.com
  • 6. Krannert School of Management Business Management 324 done with classes around 6 PM and then would go in the evening to buy groceries and also to go out for snack with their friends in late evening. 3.1.2Market Problem (Unit 6, Unit 6 Validation) The main concern of our bakery is to keep the freshness of our breads and desserts everyday and hence maximizing our sales. Since we are only able to sell breads baked on a same day, it is critical to determine the right amount to produce per day and minimize any waste from left over breads. It is also important to ensure the visual quality as well as the actual quality of breads. It is better to produce a variety of breads and have moderate quantities than just producing 3-4 kinds of breads with a lot of quantity. When our customers see a store filled with many different kinds of fresh breads, they will be more likely to buy our products. In order to do it, we need to predict our customers’ demands on breads and to figure out the way to increase their demands as well. It looks not too hard to increase our customers’ demand. According to a report posted on MINTEL, the in-store bakery market experienced strong growth in recent years. Dessert items, breads and rolls were the fastest growing segments in the industry, with expectations that the market will continue to grow. Even more, those in-store bakery customers will surely prefer our products since they have a better quality and a better taste. Moreover, in recent times, the U.S. bakery industry has gone through significant changes shifting consumer trends, particularly the growing preference for products providing health, convenience and indulgence. We should consider emphasizing these trends to increase customers’ demands; possibly by introducing more organic, but still good taste breads. Another problem will be keeping the sale price low. Since our store produces many different kinds of breads from around the globe, some of supplies will be expensive. Most our customers will be college students so if a price is too high, they might look for something cheaper. For this reason, we need to figure out how to minimize our costs of producing goods while maintaining financial sustainability. 3.1.35C Analysis (Unit 5 Qualitative, Unit 6 Quantitative) Customer Our target customers will be those who want fresh and healthy baked goods including bread, sweets, cheeses, especially Purdue students who want conveniently accessible service on campus. Purdue students and residents around Purdue are our main target customer. Sales of bakery products grew 41% during 2002-07, driven by higher prices and an increase in the Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 3 Based on Sample Marketing Documents by 280Group.com
  • 7. Krannert School of Management Business Management 324 number of stores. According to BNET’s article about market for bakery products in North America, over a five year period the bakery and cereals market in the USA increased annually by 3.1%. So, the number of customers will continue growth. Also, many customers feel healthy eating is more important. Better-for-you and portion-controlled bakery products are a growth opportunity. While 36% and 33% say they’ve tried them respectively, about a quarter of respondents say they haven’t tried them yet but would like to. Company Our product is provided in several ways. For bread, we will bake previously prepared but raw items. Many such items are delivered frozen in a tray that can go directly into the oven. We can also complete items that are already partially baked (and typically frozen) by briefly baking them in the oven; often used for breads. For cheesecakes, we will use thawing completely baked products. To purchase of completely prepared items from a supplier is an alternative. Good quality of goods make good imagine of our store. If we want to increase our brand awareness, maintaining high quality of our product is the most important. We will hire professional bakers, and keep providing our various, fresh, and homemade baked goods. The diversity of baked goods we provide is the main specialty of “Land of Bread”. Collaborators In order to provide healthy and fresh baked goods to satisfy our customers, collaborators are significant roles. We will need equipments such as oven, mixers, bread systems, roll systems, automated bagel lines, and so on. We can get those things from Air Process Systems & Conveyors Co., Inc. (http://www.airprocesssystems.com ). In order to enhance our products, we need packaging machinery including filled bag closing, heat sealers, bag tying, and so on. We can work with American-Newlong, Inc. (http://www.american-newlong.com ) on this point. Also, Central Restaurant Products, Inc. (http://www.centralrestaurant.com/ ) can provide products which available can be used for food preparation, cooking, dining rooms and refrigeration as well as furniture and sanitation needs. Competitor The biggest competitors for “Land of the Bread” bakery shop are in-store bakeries and bakery aisle in the supermarket. Our first competitor is bakery aisle in the supermarket which accounts for 62 percent of consumers’ bakery product purchases. Due to the economic slump, consumers tend to seek products that are cheaper and more convenient to find by making one stop for shopping in the supermarket like Walmart or Target and buying bakery goods from the bakery aisle to save time and fuels. The bakery aisle also offers a wide variety of bread and some of their premium and specialty breads can compete with the standalone bakeries like ours. Their products are also cheaper than the standalone bakery. However, “The Land of the Bread” Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 4 Based on Sample Marketing Documents by 280Group.com
  • 8. Krannert School of Management Business Management 324 offers more of the specialty goods than bakery aisle in the supermarket. Our products can also be customized, fulfilled special requests and sold in a much smaller portion. Our second competitor is in-store bakery which accounts for about 30 percent of consumers’ bakery product purchases. They offer a wide range of products, including many premiums offering to compete against stand alone bakery which include ethnic items that once can be found in specialty stores only such as naan, pita bread and baklava. They are positioned to take advantage of changing neighborhood trends and changing tastes. In addition, they are expanding their selection of bread, buns, rolls and offering whole wheat products. Their items are also baked fresh daily and can be customized like ours. Although the in-store bakery has increased in popularity, we offer more of the specialty goods that are more unique and high in demand for international students and community members. Our location and atmosphere also serve as a place to study, to hang out and get together for college students and community members. Context Economic Environment – According to Standard & Poor’s Equity Research, consumer sentiment is at a 25-year low on the heightened worries over inflation, weakening employment trends, housing slump and volatile financial markets. Moreover, high energy costs have also led most consumer products companies to raise prices due to an increase in price of raw materials and transportation. With the food and energy inflation, people tend to cut back their spending and tend to eat home. This could cause major impact to our business. Social and cultural environment – Although in the United States, Italian and French bread are the most popular bread that consumers buy, “The Land of the Bread “offers many types of bread from many countries around the world. We expect the high growth in sale of various types of bread, cakes and sweet due to the different in nationalities in the area that our bakery store will be located. We also believe that college students and community members aware of the healthy products. Many products that are claimed to be high in fat have declined in popularity significantly due to the healthy eating trend. People now tend to buy wholegrain products because it is claimed to be healthy and low in fat. Political and regulatory environment – To open a bakery in Indiana, we are required to obtain local business license, permits and tax registration application. Technological Environment – “The Land of the Bread “will consistently create new type of products to keep consumers coming back to our bakery. We will also control the portion of our products to keep them small. This technique appeals both to people who try to manage their weight and to smaller households. It will also increase the everyday purchase from our store. In addition, we will have premium goods that their price are slightly higher due to the Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 5 Based on Sample Marketing Documents by 280Group.com
  • 9. Krannert School of Management Business Management 324 price of the ingredients, the quality, the taste and the difficulty in making to attract customers that are willing to pay higher price for higher satisfaction. We also notice that the important of the safety standard and quality of our products. Thus, we will use the inspection system Ingredient and Raw Material Screening, In Process and Bulk Inspection, metal detectors and checkweighers. Sources: http://www.thomasnet.com/ http://www2.lib.purdue.edu:6946/ http://www.bnet.com/?tag=header;logo http://www.businessnation.com/services/licenses-permits/indiana-business-licenses/ http://www2.lib.purdue.edu:6946/sinatra/oxygen_academic/search_results/show&/display/id =296663/display/id=392224#hit1 http://www2.lib.purdue.edu:6946/sinatra/oxygen_academic/search_results/show&/display/id =296663/display/id=392216#hit1 3.1.4SWOT Analysis (Unit 4) STRENGTHS WEAKNESSES 1. Bakery exterior would be clean and tidy 1. Lack of brand recognition as the bakery is a start up 2. High quality food offerings including breads from all business over the world 2. Limited marketing budget available to create brand 3. Choice of different menu items not available awareness anywhere in W. Lafayette Area 3. Lack of experience in the food sector 4. Great retail space that is new, clean and located in a perfect area OPPORTUNITIES THREATS 1. New building complexes are being built nearby so we 1. New restaurants are opening up which might cut can increase our operations profit margins 2. Diversifying our operations by opening a café, 2. Competitors from local restaurants may respond by restaurant, etc reducing their prices to increase sales 3. Food market immune to economic slowdown 3. Fluctuating food prices 4. Potential competition from new entrants 3.2.Customer Profile 3.2.1Customer Needs, Wants and Demands (Unit 7) In order to get some perspectives of our future customers’ needs, wants, and demands, we have made a survey. The result shows that with an average of 7, on a scale of 1 to 10, people are willing to purchase something from ‘Land of the Bread.’ Also, 56% responded they would come to our store 1or 2 times a week, and 24% responded they would come 3 or 4 times a week. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 6 Based on Sample Marketing Documents by 280Group.com
  • 10. Krannert School of Management Business Management 324 # of times visiting our store per week 15 10 5 0 o p # e f l 1-2 times 3-4 times 5-6 times Everyday None We should focus on fast and friendly service since this is a part where most people consider as very important. According to our survey, 67% of people we asked think friendly and fast service is very important. 44% of people consider that knowledgeable staff that is informative of the breads and their origins is important. We also should keep consistency of our breads menu. 72% responded it is very important to have a constant and consistent menu of breads. 50% of people consider that having a rotating menu with more variety of breads available is important. Since 80% responded that they want to wait for fresh made bread for less than 10 minutes, we have to focus on fastness of our service so that our customers do not have to wait long. 72% people are not interested in having an entire week dedicated to one country’s specialty breads; which means that customers want to try new things instead of always having only one taste. Based on our survey, sweets, flaky, and crusty are most desirable preference. Our product should focus on those goods. Furthermore, 48% people they are interested in our special designed birthday cake, and they are very likely to buy one. Lastly, we need to manage to have low development costs and to set our price as low as possible. 92% of people think less than $2.00 is a reasonable price to spend on a piece of bread. 3.2.2Customer Use Behaviors and Characteristics (Unit 7) “Land of the Breads” customer use behavior and characteristics can be understood from our survey in Appendix A. Most of our customers are students and local residents of the West Lafayette community. According to our survey our consumers are in the age group of 18-25 years old. Almost 50% of them have jobs either part time or full time. Our customers have varied budget with 36% spending less than $25 per week, 24% spending between $25 and $50 per week and 40% spending over $50 per week. Survey data shows that 36% would want a piece bread to be under $1.50 but majority of the people (56%) consider a price between $1.50 and $2.50 to be a reasonable price. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 7 Based on Sample Marketing Documents by 280Group.com
  • 11. Krannert School of Management Business Management 324 Customers were indifferent towards the bulk buying of breads if offered discounts. More than half (56%) of the people surveyed said they enjoyed eating international breads and if given information about the origin and nationality of the concerned bread, would consider buying the bread. Another 50% said that information regarding the bread would not affect their buying decision but it would not have a negative effect either. 56% of the customers would come to “Land of the Breads” 1-2 times a week while another 24% would come 3-4 times a week. An overwhelming majority, 96%, of the people surveyed said that given an opportunity to taste breads before purchasing, they would be more interested in buying the bread. Most customers (60%) would not like to receive information via mail but would check the website for promotional information. 3.2.3Value Chain (Unit 9) Hierarchal Value Map: “Land of the Bread” 3.2.4Consumer Choice Process (Unit 9) Consumer choice process Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 8 Based on Sample Marketing Documents by 280Group.com
  • 12. Krannert School of Management Business Management 324 To grow in a business, we would like to get a better insight of customer interests and preferences and use that information to improve our services and products. In order to do that, we will analyze the consumer choice process. Cognitive stage: First, our customers will recognize that they have the problem. Due to the limit number of places to eat, they do not have the variety of choices to choose from especially students who nearby campus and are not accessible to a car. Now many students want to try something new. Some of the students will find out about our bakery from the local newspaper, the exponent and local radio station. Most of them might not aware of our bakery because our products consist of specialty bread, sweet and cake from many countries around the world that they have never tried before. Hopefully, our week of tastings and our product samples provided during many of the special school events will attract customer interests. Affective stage: Now many students become aware of our products, and since they have realized that our products have better qualities, better services and distinguish products that are different from other store, they will be more likely to come to our bakery and continue to purchase our products. Behavior stage: Customers are going to purchase our products directly from our stores which will be located in the North Chauncey area. They will purchase our products not just because of our high in qualities but the varieties and healthiness of our products. We hope that all those characteristics will bring the positive influences to our customers and our performances will satisfy our customers and meet their expectations. Cognitive Stage Affective Stage Behavior Stage Awareness: Knowledge Liking Purchase: students : students &Preference: Continue notice the recognize Prefer our better purchasing the limit number our qualities, better products due of places to products services and 3.3.T to our high eat from our distinguish performance. arget s advertisem products Market Segment 3.3.12X2 Segmentation Analysis (Unit 10) Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 9 Based on Sample Marketing Documents by 280Group.com
  • 13. Krannert School of Management Business Management 324 Fast Friendly Service High………..…………………………………………………….Low 3 2 1 0 Low…………………………………..High 3 2 Variety of Breads 1 0 36% 0% 56% 8% After further analysis (attached in appendix A), ‘Land of the Bread’ distinguished four groups essential to our target markets. The Quadrants I, II, III, and IV are labeled as follows: BOILERMAKERS, # 1 FAN, NO-GO ZONE and BENCH WARMERS. Below are important and distinct characteristics for each of the four quadrants. BOILERMAKERS NO-GO ZONE -likely to be female -likely to have a job -students -ages 18-25 -likely to live on campus Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 10 -spend on average 25-50$ weekly Based on Sample Marketing Documents by 280Group.com
  • 14. Krannert School of Management Business Management 324 # 1 FAN BENCH WARMERS -likely to NOT have a job -split evenly between male and -almost 80% are students female -students likely spend $10-24 a -just as likely to have a job as NOT week on food have a job -20 % are residents aged 26-50 -even mix of students and residents -residents likely spend over $50 a -ages 18-25 week on food -likely to live on campus -likely to NOT live on campus -spend on average 25-50$ weekly 3.3.2Target Customer Profile (Unit 10) Our target customers can be further split into four groups: Wise guys, Purdue Pete, International, and Townies. Wise guys quadrant consists of faculty, graduate students and their families that insist on high quality international variety and with such demanding schedules they demand fast and friendly service. These individuals are interested in a high quality bread variety that may be purchased for their individual or family consumption. Purdue Pete quadrant consists of your average college student that likes bread, yet has little money to spend and in general has an indifference to both international bread variety and fast and friendly service. These individuals are likely to visit ‘Land of the Bread’ for on the go snacks or cooking adventures. In either case their visits are not consistent but still make up a decent portion of business. International quadrant consists of your international students that while away from home miss freshly made bread in a wide variety of international styles. They are not as concerned with fast and friendly service but mainly interested in the international variety of breads available. These individuals make up the majority of ‘Land of the Bread’ business and provide consistent and loyal customers that visit the store regularly. Townies quadrant consists of residents in the West Lafayette and Lafayette area that have no great concern for international variety or fast friendly service. These individuals are indifferent to our variety of breads from all over the world and while they may frequent ‘Land of the Bread’ on occasion, they will not be our main customers. 3.3.3Customer Use Case (Unit9) Case #1 Abam Ababue is 19 years old. She is an international student from Africa attending Purdue University for one year. She has difficulty in finding food that fits her appetite. She misses home so much, and she really wants some food that has home taste. Then, she finds Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 11 Based on Sample Marketing Documents by 280Group.com
  • 15. Krannert School of Management Business Management 324 our bakery - “Land of the Bread”. “Land of the Bread” provides unique bakery goods from different countries around the world, and that includes Africa. She has purchased some products from the store, and the taste is just like what she has been missing. Case #2 Mr. Robert is a professor of Purdue University. He is 39 years old. He is always busy because of the large amounts of work. He has a 7:30 AM class on Mondays and Wednesdays, so he has to arrive to school around 7:00 AM. The situation makes him usually have busy mornings and have no time to have breakfast. He found “Land of the Bread” which opens early and is just on the campus. It has fresh and delicious baked goods, which is why he likes to go to the store every Monday and Wednesday morning to have a piece of fresh bread and a cup of coffee. Case #3 Andy is a 21-year-old Purdue student who is a big fan of bread. He loves bread, and he eats bread almost every day for lunch. However, he has tasted most of bakery around the campus, and he really wants to try something new. Besides that, he does not have too much time for lunch every day, so he wants something quick, tasty, cheap, and healthy. Thus he has chosen to purchase products from the “Land of the Bread”. 4. Positioning 4.1.Current Customer Perceptions (Unit 7) Current Consumer perception One of The Land of the Bread’s goal is to give Purdue students and Lafayette Community member’s highest satisfaction in customer service, quality of our products and the price range. Price We offer high quality and reasonable price bread to our customers. The survey we conducted has shown that most of the people are willing to spend only $1.5 to $2.00 on a piece of bread. This indicates that our consumers would look for low price bread as well. The price of our bread would be a little higher than their demand, but we would let them understand that our bread worth the price; we would provide sample tastes and promotions in order to increase their demand and purchasing power. Service Quality Our statistics shows that our future customers like fast service. Most of them want to wait for our fresh made bread, cakes and sweets no longer than 5 minutes. Thus, we will provide them with the fast and friendly service by having 2 cashier counters so that they will spend less time waiting on the line. If for some reasons, our products take longer than 5 minutes to make, we will inform our customers the length of time until they receive the orders (approximately less than 10 minutes) and give them a calling card number. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 12 Based on Sample Marketing Documents by 280Group.com
  • 16. Krannert School of Management Business Management 324 In addition, our statistics also show that nearly half of our future customers would like friendly and knowledgeable staffs to inform them about the origin and nationality of the bread before they make their buying decisions. Thus, we would have the staffs to give our future customers information about our products and give them a small free sample. We believe that our knowledgeable staffs and a free sample would encourage customers to buy our products, create friendly environment and draw them back to our bakery in the future. Product differentiation and product quality We strive to serve the customers the best quality products that are unique and differ from other bakery shops. We will offer fresh baked bread that we will bake daily and stress how important it is to bake “fresh bread” to customers. Our method are to clarify the date we make the bread and give the pamphlets to show why it is important to bake fresh bread, the nutrition facts, the types and origin of the bread and how it benefits health. 4.2.Value Proposition 4.2.1Value Proposition (Unit 8) ‘Land of the Bread’ offers high quality baked goods including specialty bread, sweets and cakes from every corner of the world that Purdue students and community members have never experienced. Our customers would be able to find unique and diversity goods that other bakeries cannot provide. We strive to provide reasonable price but high quality, fresh, tasty and healthy products to satisfy our customers. The Land of the Bread offers a perfect atmosphere for a place to study and get together. Our high quality services, friendly and knowledgeable staffs will make sure that our consumers receive the highest satisfaction and create an unforgettable impression for our customers. 4.2.2Unique Selling Proposition (Unit 12) For Purdue university students and faculty members who are tired of existing restaurants around the campus and looking for somewhere else they can enjoy special, tasty food, ‘Land of the Bread’ is the best place to experience that kind of uniqueness because it provides the variety choices of good quality breads, cheeses, and sweets from many different countries which many customers had never tasted before. To experience these distinctive features, customers will pay little higher than the average market price but lower than prices of competitors with same level of quality; and be willing to accept some of our relatively less healthy products for better tastes. 4.2.3Price / Performance Value Map (Unit 8) It is obvious that customers want a high performing product at a low price. After examining our possible 4 competitors, (Wal-Mart, Green Sprout, Great Harvest, and Panera) we have built a value map showing relative price and performance of each product. From this Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 13 Based on Sample Marketing Documents by 280Group.com
  • 17. Krannert School of Management Business Management 324 map, we can conclude that ‘Land of the Bread’ is in a region that is above average performance and below average price. If we bring higher quality and performance successfully, there is a great chance that we will be the best among all. Relative Price-Performance and Relative Value AVE PERF REL PERF AVE PRICE REL PRICE REL VALUE WALMART 55 87.301587 3 85.7142857 1.587301587 LAND OF THE BREAD 75 119.04762 3 85.7142857 33.33333333 GREAT HARVEST 45 71.428571 5 142.857143 -71.4285714 GREEN SPROUT 60 95.238095 3 85.7142857 9.523809524 PANERA 80 126.98413 3.5 100 26.98412698 AVE TOTAL 63 100 3.5 100 0 Formulas: Relative Performance is figured by taking the average performance of each individual competitor divided by all 5 competitors’ average performance. For example Land of the breads relative performance would be 75/63 to get 119.04762 as shown in the table above. Relative Price is figured by taking the average price of each individual competitor divided by all 5 competitors average prices. For example Land of the Breads relative price would be 3/3.5 to get 85.7142857 as shown in the table above. Relative Value is then figured by taking the Relative Performance and subtracting the Relative Price for each individual competitor. For example Land of the Breads relative Value would be 119.04762 – 85.7142857 to get 33.33 as shown in the table above. Price Performance Value Map Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 14 Based on Sample Marketing Documents by 280Group.com
  • 18. Krannert School of Management Business Management 324 (In the above graph the grey shaded box represents the area in which a company is both above averages in performance and below average in price.) 4.2.4Customer LTV analysis (Unit 8) Lifetime Value represents how much each customer is worth to our company over a period time; it also provides us information how much times and efforts we have to spend to acquire customers. The LTV below is calculated by following formula and values: M LTV = − AC 1− r + i LTV analysis (M): average margin per yr $140 (r): retention rate 80% (i): discount rate 5% (AC): acquisition cost $140 LTV $420 (M): Each customer will spend average of $4 for a couple of breads once a week for about 35 weeks out of a year, which makes $140 of M per year. (r): Once our customers experience a high quality of our breads, they will be more likely to come back and purchase goods from ‘Land of the Bread.’ This is calculated by 1- (1/N) where N is the expected life in year. (N = 5 yrs) (i): Discount rate is used to discount future revenue from a customer. (AC): this is the average cost of losing or obtaining a customer, which is $140 per. 4.3.Product Positioning 4.3.1Positioning Statement (Unit 12) Students and faculty members who are getting tired of eating same kinds of food for lunch or dinner everyday at a campus are probably willing to try something new and special. ‘Land of the Bread’ is a perfect place for them; it is the unique dining place where customers can be satisfied with its various choices of distinctive high-quality breads, cheeses, and sweets and with reasonable prices. To keep the products’ uniqueness and to follow the future trend, ‘Land of the Bread’ will continue developing new kinds of products and introducing new items such as special beverages. 4.3.22X2 Product Perceptual Map (Unit 12) Bakery market perceptual map depicts the perceptions of customers or potential customers based on the quality of the products and the price. Our goal is to determine how Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 15 Based on Sample Marketing Documents by 280Group.com
  • 19. Krannert School of Management Business Management 324 customers perceive our products and the products from our competing bakery stores in Lafayette/West Lafayette area. In segment 1, consumers expect to pay high price for the high product quality. Land of the Bread and Panera Bread are fallen in this segment. Although consumers perceive Great Harvest Bread Co. as healthy, fresh, high in fiber and vitamins, the price of its products are a little bit too high for what consumers are willing to pay for. In segment 2, consumers expect to pay low price for mediocre quality products. The majority of the market share in this category is Wal-Mart. The company tries to lower its price and at the same time maintains the quality of its products by selling in bigger portions as compare to stand-alone bakery shops such as Land of the Bread and Panera Bread. However, Panera Bread and Land of the Bread focus more on variety, healthiness, and nice packaging. In segment 3, consumers expect to pay low price for low quality goods. For Lafayette and West Lafayette community, the majority of the market share in this category is Sam’s club where the bakery items are sold in bulk. BAKERY MARKET PERCEPTUAL MAP • Great Harvest Bread Co. • Panera Bread High Price 1 • Green Sprout • Land of the Bread • Marsh Supermarket • Wal-Mart Low Price 3 2 • Sam’s Club Low Quality High Quality 4.3.3Product Feature Radar Map (Unit 12) Using data extracted from our survey and the perceptions of our competitors we have compiled the following radar map to distinguish the different strong and weak points of not only ourselves but our competitors. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 16 Based on Sample Marketing Documents by 280Group.com
  • 20. Krannert School of Management Business Management 324 5. Marketing Plan 5.1.Marketing Objectives (Unit 4) 1. To create brand loyalty by having a steady group of customers within 12 months of opening. 2. To increase public awareness & visibility through investing in advertising by 15% by January 2010. 3. To reach a market share of 7% during the first year (2009), and increase market share from 7% to 15% in the second year (2010). 4. To avoid competitors by reducing prices and added new items in the third year (2011). 5. To achieve a profit growth of 20% at the end of the third year (2011). 6. To expand to surrounding cities after gaining a five years’ operating. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 17 Based on Sample Marketing Documents by 280Group.com
  • 21. Krannert School of Management Business Management 324 5.2.Marketing Strategies 5.2.1BCG Matrix (Unit 4) 5.2.2Product-Market Growth Matrix (Unit 4) 5.2.3 5.2.4 5.2.5Brand Strategy (Unit 11) “Land of the Brand” is our bake shop’s name, but a brand is a lot more than a name Existing New Market Penetration: Market Development: Increase sale to current customers. Develop to new customers with current Existing How? Advertising more; “Week of products. How? Expand our store to tastings”; One free bread for 10 different areas for new customers; Products purchased breads; special discounts Lafayette residents, students from different universities. Product Development: Diversification: Provide more choices to existing Expand to different areas with current customers with variety of products. and new products. How? Additional New How? Offer new flavors of breads; choices of breads from different deserts; coffee countries and a logo. Brand is the entire experience of our prospects and customers have with the company. It stands for us. A great brand strategy helps us communicate more efficiently with our customers. Our brand is totally new for our target customers, so the most important brand strategy is to build our brand awareness. The most efficient way to build brand awareness is advertising. We plan to open our store in September, 2009. We will hold a “week of tastings” which provides free sample bread and other baked goods to attract customers in the first week. We will also publicize our Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 18 Based on Sample Marketing Documents by 280Group.com
  • 22. Krannert School of Management Business Management 324 store via fliers, radio programs, newspaper ads, and we will provide our product to campus events, like career fairs. In order to build brand loyalty, to promote our brand strategy is necessary. Packaging is an important aspect. We need to utilize an attractive and impressive package. The feature of our products conveys important messages to our customers. We also need to provide high quality services. Customer will emotionally feel comfortable with our heart to heart service. Everything we do and we create should have the same characteristic which represents our store, and they should easily distinguish from other competitors. . Finally, our brand strategy is based on our high quality goods and services we provide. Therefore, unswerving execute our mission is the fundamental for our company. Our company will continuously provide fresh, healthy, and delicious baked goods from every concern of the world. Follow our mission and brand strategy all the time can make our business successful 5.3.Marketing Tactics 5.3.1Product Overview (Unit 3) ‘Land of the Bread’ provides fresh baked goods from every corner of the world including a decadent variety of specialty breads, cheeses, and sweets to attract the culturally diverse community surrounding Purdue University. The diversity of our product line offers not only a taste of home for the many international students but a chance to taste a part of culture otherwise unavailable to Purdue students, faculty and community members. To develop a unique dining alternative for Purdue University and surrounding areas ‘Land of the Bread’ will have a mix of fresh specialty goods from the following markets: Asian, Mexican, French, German, Thai, Indian, Western, and Hawaiian. These goods will include homemade breads, baguettes, croissants, sweet rolls, cakes, cheesecakes, cheeses, and other baked goods. The baked goods sold at ‘Land of the Bread’ represent the integrative measures of our globalized 21st century by adhering to the tastes of many nationalities present at Purdue University and nearby communities. 5.3.1.1Product Lifecycle and Roadmap (Unit 3) At the introduction of ‘Land of the Bread’ we anticipate the lifecycle of our company to initially spark attention throughout campus due to the nature and rarity of our business. With no other business currently on the competitive market our sales will continue to rise as we gain popularity throughout campus and the Lafayette area. As sales rise, our company begins to see a profit and the variety of specialty goods from every different Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 19 Based on Sample Marketing Documents by 280Group.com
  • 23. Krannert School of Management Business Management 324 market will be able to grow due to demand and profit potential. ‘Land of the Bread’ will continue to maintain high profit and sales due to our reputation of international specialty items and the customer based product lines. At the growth of ‘Land of the Bread’ we expect a steady surge of business from regular customers, first time buyers, and the emerging presence of Lafayette home owning residents that will have traveled to our store to purchase our international goods. This increase in customer base will insure that our profits will continue to rise as we easily meet our customers’ wants and needs. During the maturity of ‘Land of the Bread’ our profits will peak and customer cost will be low. Customer satisfaction will be extremely high and our advertising expenses will decrease slightly due to the continual nature of our steady retention of customers. Finally in the decline of ‘Land of the Bread’ our goal will be to retain our many loyal customers as the sales and profits now reduce slightly and stabilize. This decline is possibly due to changing consumer taste and new emerging competitive markets. To jumpstart our market we would implement lower costs and offer a mix of new specialty items such as chocolates, deserts, and hard to find breads and cheeses to our product base. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 20 Based on Sample Marketing Documents by 280Group.com
  • 24. Krannert School of Management Business Management 324 Timeline of product lifecycle: During the Improve quality Reduce first week, Maintain of our goods variety of Reduce we will high and also our bread, slightly on hold a quality of provide some so that we our “week of our goods new features can focus advertizing tastings” in order to and new on high due to the events to build brand packaging demand stability of attract loyalty options to goods our sales customers attract customers Introduction Growth Maturity Decline Keep To avoid Offer mix advertize competitors’ Open new store In order to of new During the our store stress, we can in Lafayette, launch our specialty second week, aim to provide new restructure of new store, we items such we can capture features to our business, will pass as disseminate additional differentiate from focus on highly fliers in chocolates, our store customers competitors, or demand campus, and deserts, among we can provide products, and publicize our hard to find Purdue some discount add new lines launch and breads and students, and add new of our product, the event, a cheeses to faculty, service, like like coffee. “week of our product recruiters, deliver goods tastings” base. alumni, through family, and radios or community newspapers members because of the campus events, like Management Fair, Family Weekend and Career Fairs Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 21 Based on Sample Marketing Documents by 280Group.com
  • 25. Krannert School of Management Business Management 324 5.3.1.2Product Requirements (Unit 11) Product Requirements 1. General products requirement Every food item from our store has to meet the safety standard. Every ingredient that we use must be clean, fresh and does not contain any toxic chemical that is harmful to human body. Since we value the freshness, we will make our products daily and make sure that none of our products will sit in the store for more than two days. We will dispose of the products that are left over regardless of any reasons. In addition, we will always maintain every machine and bakery equipment such as moving blades, mixing arms, mixers and rollers in a good condition. Every process of production must be perfect in order to produce the highest quality goods that are fresh, clean and tasty. 2. Specific products requirement • Variety of the products – We will provide popular items of breads, sweets and cakes from many countries around the world. Our products must be different and unique from other bakery stores around West Lafayette/Lafayette area to attract customers. Our goal is to provide a taste of home for international students and give a new dining experience that students and Lafayette community have never tried from anywhere else before. We will consistently add new flavors and new bakery items to draw new and old customers to keep coming back to our store. • Convenience – Every products from our store must be easy to eat, take care of and convenience to take back home. Most of our items can sit in the room temperature for 2 days. However, we recommend keeping the items in the refrigerator. Every “to go” item must be placed in the paper box to protect it from breakage. • Healthy products – We know that many people are now following the healthy eating trends. We believe that products providing health, convenience and pleasure will have a high probability of success. Thus, not only our products will be easy to eat, easy to carry and taste good but also high in nutrition and healthy. Our products will be made of healthy ingredients. For instance, we will use brown sugar, honey, wheat bread, soy protein etc. as our ingredients in making our fresh baked bread. We will corporate the use of real fruits and vegetables such as carrots, kiwis, mangoes as ingredients in many of our sweets and cakes items. We want our customers to see our bakery as healthy, natural and real. 3. Serviceability Requirement The Land of Bread provides the best quality bread for every customer, and we will make sure to maintain on this high quality. However, if there is the case that our product did not satisfy our customers, our serviceability requirements would allow them to refunds. This means, the customers can bring back their purchases and ask for money return. The returned bread will be sent to examination for more detail information. Our service requirements also Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 22 Based on Sample Marketing Documents by 280Group.com
  • 26. Krannert School of Management Business Management 324 allow our customers to bring back their purchase for reheating if they required, because we want our customers to have the freshest bread that they can only find at Purdue. 5.3.1.3Product Packaging (11) At ‘Land of the Bread’ we want our product front and center. Our upfront glass cases will draw those in from outside who look into our glass cases full of fresh assortments of bread, cheeses and sweets. These glass cases will be a functional way to package our breads in such a way to create an irresistible smell and appearance that will tempt even the skeptic of the bunch to taste one of our breads from all over the world. As these following pictures indicate, ‘Land of the Bread’ packaging will be a reflection of the young generation that makes up our major market. ‘Land of the Bread’ will not be limited to a logo, but actively engage customers with packaging that resembles their on- the-go lifestyles in an attractive easy to carry assortment of sizes, shapes, and forms. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 23 Based on Sample Marketing Documents by 280Group.com
  • 27. Krannert School of Management Business Management 324 5.3.1.4Product Launch Strategy (Unit 3) At the launch of our new store ‘Land of the Bread’ we will have a weeklong tasting to sample the exquisite variety of our breads, cheeses, and sweets in order to provide a craving and desire for our rich baked goods. During the beginning of school fall 2009 we would expand our advertising to the Exponent during the first weeks of school and on local radio stations such as 102.9FM and BOB 95.7 FM in order to publicize our week of tastings! Then during the second week of September around the Industrial Roundtable, Management Fair, Family Weekend and Career Fairs we will capitalize on the supple amount of Purdue students, faculty, recruiters, alumni, family, and community members to reach an astounding amount of potential customers. 5.3.1.5Product End-of-Life Strategy (Unit 3) To expand the reach of ‘Land of the Bread’ we shall increase our marketing opportunities by opening a store in Lafayette around the new development on SR 350. Accompanying our new location, we shall also restructure our product lines to offer the most highly demanded specialty goods while also adding a few new lines to our product base such as coffee. We believe this end of life represents the nature of our business to prevail in the location of Purdue University and the surrounding Lafayette community as well as opens the doors to more adventurous horizons that may await us. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 24 Based on Sample Marketing Documents by 280Group.com
  • 28. Krannert School of Management Business Management 324 5.3.2Pricing 5.3.2.1Product Demand Curve (Unit 13) Product Demand for a Small Portion of Bread y = -0.5871x + 4.8324 6 5 P r4 i 3 Linear c e2 Linear 1 0 0 2 4 6 8 Quantity Demanded Price: $2.65 Quantity: 4 Consumer Surplus: 4.7 Some of the Strengths of our product demand curve are that this gave us a good approximation of our optimal price and quantity demanded. While the sample size is small the customers profiled show us a distinct pattern of where our target customers, those in the surrounding Purdue University area, would value the products we are selling. Some of the weaknesses of the demand curve were that our sample size of 25 was not ideal, and a larger sample if applicable would have given us a more accurate estimation of the price and quantity. Also at ‘Land of the Bread’ we offer a wide range of products including cheeses and deserts plus a variety of sizes including small and large portions that are not depicted in this demand curve. Price/bread Quantity Profit = P * Q 1 6 6 1.5 6 9 2 5 10 2.65 4 10.6 3 3 9 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 25 Based on Sample Marketing Documents by 280Group.com
  • 29. Krannert School of Management Business Management 324 4 1 4 5 0 0 SUM 25 Above is the excel data we used in the Product Demand Curve. We sampled Price on the Y-axis and Quantity on the X-axis. As you can see in the third column labeled Profit, $2.65 is the price where profit is maximized and thus the equilibrium price used in our model. 5.3.2.2Pricing Strategy and Price Functions (Unit 13) The pricing strategy of Land of the Bread will use the market based pricing. This will be the better strategy since we are selling unique products, and there are few competitors in the market. Instead of setting our price too competitively, we would like to set our price match with the quality of our products, but still keep our price reasonable. None of the restaurants have offered this kind of special products as we do. Thus keeping the lowest price just to beat all of our potential competitors does not meet with our strategy. Land of the Bread primarily focuses on the product differentiation. The first step we will take is to set our price a little higher than those grocery stores, such as Wal-Mart, Target, and Payless, etc, but lower than the local bakeries. As Land of the Bread becomes more well-known causing the demand goes up, we will add more perceived value than that derived from competitors products. Next, our pricing will base on the unique needs, which is the worldwide bakery we offered. Finally, we will reach the plus-one phase, which when our unique products attribute differentiates an offering. Equation: Price = (Maximum Price) – ([slope of the demand curve]*[quantity demanded]) PRICING STRUCTURE Maximum Price $5 Slope of the demand curve -0.5871 Quantity demanded 4 Price 2.65 (*Price in the table is for the small portion of bread. ) Once our customers realize the value of our products, they will be willing to pay above the price. By using the market based pricing strategy; the Land of Bread will be able to maintain the competitive place in the market with high profits. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 26 Based on Sample Marketing Documents by 280Group.com
  • 30. Krannert School of Management Business Management 324 5.3.3Promotion 5.3.3.1Commercial (End Of Course) 5.3.3.2Product Pitch (End of Course) 5.3.4Place Overview 5.3.4.1Distribution Channel (unit 14) 5.4.Forecasts and Success Measures 5.4.1Sales and Profit Forecasts (Unit 13) Assumptions: • We assume that our market share for the first year is 7%, and it will grow 2% every year, so, in the fifth year of our company, the market share should be 15%. • We have three different products, bread, cheese, and sweets. We assume that the average prices are $2.18, $3.50, and $2.00 respectively. Bread Year # of units sold French Bread Irish Soda Bread Limpa Bread 1 27502 48128.50 72880.30 59129.30 2 35356 61873.00 93693.40 76015.40 3 43218 75631.50 114527.70 92918.70 4 51074 89379.50 135346.10 109809.10 5 58938 103141.50 156185.70 126716.70 Cheese Year # of units sold small portion mid portion large portion 1 27502 82506.00 96257.00 110008.00 2 35356 106068.00 123746.00 141424.00 3 43218 129654.00 151263.00 172872.00 4 51074 153222.00 178759.00 204296.00 5 58938 176814.00 206283.00 235752.00 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 27 Based on Sample Marketing Documents by 280Group.com
  • 31. Krannert School of Management Business Management 324 Sweets Year # of units sold Cake Pie Muffin 1 27502 82506.00 55004.00 27502.00 2 35356 106068.00 70712.00 35356.00 3 43218 129654.00 86436.00 43218.00 4 51074 153222.00 102148.00 51074.00 5 58938 176814.00 117876.00 58938.00 Bread Cheese Sweets Total Year 1 180138.10 288771.00 165012.00 633921.00 Year 2 231581.80 371238.00 212136.00 814955.00 Year 3 283077.90 453789.00 259308.00 996174.00 Year 4 334534.70 536277.00 306444.00 1177256.00 Year 5 386043.90 698100.00 353628.00 1358521.00 5.4.2Marketing and Financial Success Measures (Unit 13) The most important element of our marketing strategy is the delivery of a quality product. Our breads, cheeses and desserts must first sell themselves through word of mouth. Next, the packaging of our products and advertisements has to fit our positioning. We offer a variety of international breads to the Purdue community to offer a truly global experience. We then communicate this through the free weekly media such as the exponent and traditional public radio sponsorships. Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 28 Based on Sample Marketing Documents by 280Group.com
  • 32. Krannert School of Management Business Management 324 We will then attempt to create opportunities for visitors to the city to look forward to experiencing “Land of the Bread.” Some key marketing success measures will be: 1. Increase public awareness & visibility through investing in advertising by 20% by the first 6 months of opening the bakery 2. Upgrade services by improving average delivery time of bread, cheese and dessert by 2 minutes each by 1st year of operation. 3. Ensuring product quality by having a 98% customer satisfaction via feedbacks from customer. 4. The dining/bakery experience must be delivered in a fashion that will not only inspire repeat business, but encourage word-of-mouth recommendations to others. “Land of the Bread” plans to be profitable within the first year of operation. Our goal is to reinvest in the company and expand to 4 stores by the fifth year. Some of the financial measures we will have are: 1. Sales approaching and surpassing $400,000 by the end of the first year. 2. Targeting and maintaining a net profit of at least 8% by the second year. 3. To cultivate monthly sales to reach $30,000 by the end of the fourth month of operation, and $75,000 monthly by the end of the first year of operation. 4. To increase efficiency by reducing administrative cost by 10% per year by 2012 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 29 Based on Sample Marketing Documents by 280Group.com
  • 33. Krannert School of Management Business Management 324 6. Appendix A Land of the Bread Survey A wise man once said “Customer is always right.” Our bakery follows that motto and will do anything to make sure our customers are satisfied. This survey will help us immensely in getting information from you so that we can provide better goods and services. Please allow 5 minutes of your time in completing this questionnaire by answering all of the questions. We really appreciate your kind suggestions and feedback. Respondent Profile Information This part of the questionnaire focuses on learning the demographic and behavioral characteristics of our target market: 1. Are you a _________ ¡ Student ¡ Staff ¡ Faculty ¡ Resident 2. What is your gender? ¡ Male ¡ Female 3. Do you have a job? ¡ Yes ¡ No If yes, is it part time or full time job? 4. Do you live: ¡ On Campus ¡ Off Campus 5. What is your age? ¡ Under 18 years old ¡ Between 18 to 25 years old ¡ Between 26 to 50 years old ¡ Over 50 years old 6. On average how much do you spend on buying food per week? ¡ Less than $10 ¡ Between $10 to $24 ¡ Between $25 to $50 ¡ More than $50 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 30 Based on Sample Marketing Documents by 280Group.com
  • 34. Krannert School of Management Business Management 324 Product Questions This portion of the questionnaire is to determine characteristics of the product people would prefer. 7. Rate the following questions on their importance to you. Very Somewhat Not Neutral Important Important Important Having fresh bread available in the early morning before 10am. Seeing the bread being made fresh while you are waiting. Having a constant and consistent menu of breads available. Having a rotating menu with more variety of breads available. Trying breads from all over the world. Being able to purchase bulk quantities. Understanding the origin and nationality of the breads before purchasing. Knowledgeable staff that is informative of the breads and their origins. Fast and friendly service. 8. Rate your likeness to: Breads: Dislike Indifferent Love 1------2------3------4------5------6------7------8------9------10 Cheese: Dislike Indifferent Love 1------2------3------4------5------6------7------8------9------10 Cake: Dislike Indifferent Love 1------2------3------4------5------6------7------8------9------10 9. Would you be interested in having an entire week dedicated to one country’s specialty breads? ○ Yes ○ No Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 31 Based on Sample Marketing Documents by 280Group.com
  • 35. Krannert School of Management Business Management 324 10. Have you ever had bread made from another country? ○ Yes ○ No 11. Do you enjoy international breads? ○ Yes ○ No 12. Rank the following qualities you desire in choosing bread: 5 being the most desirable preference and 0 being the least favorable preference when choosing bread. __Sweet __Flaky __Crusty __Cheesy __Herbs & Spices __Other 13. Would understanding the breads’ origin and nationality ¡ Positively affect your buying decision ¡ Negatively affect your buying decision ¡ Would not affect your buying decision 14. Would a suggestion box where you would be able to suggest specific breads from different countries that Land of the Bread should bake next: ¡ Positively affect your buying experience ¡ Negatively affect your buying experience ¡ Would not affect your buying experience ¡ Increase your likeliness to return to Land of the Bread 15. How many times a week do you think you would come to Land of the Bread? ¡ 1-2 ¡ 3-4 ¡ 5-6 ¡ Everyday ¡ None 16. How long would you wait for fresh made bread? ¡ Less than 5 minutes ¡ 5-10 minutes ¡ 10-15 minutes ¡ Over 15 minutes 17. If offered a discount for buying in bulk or family sizes quantities would you be interested? ○ Yes ○ No Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 32 Based on Sample Marketing Documents by 280Group.com
  • 36. Krannert School of Management Business Management 324 18. If offered an opportunity to taste breads before purchasing them would you be more interested in purchasing these breads? ○ Yes ○ No 19. List 3 breads and their country of origin if known that you would love to see. [Participants provide answers in their own words] ¡ _____________ ¡ _____________ ¡ _____________ Pricing Questions This part of the questionnaire focuses on determining pricing preference: 20. Which one is a reasonable price for you to spend on a piece of bread (bagel size)? ¡ Less than $1.50 ¡ $1.50 to $2.00 ¡ $2.00 to $2.50 ¡ More than $2.50 21. How much are you willing to purchase something from ‘Lang of the Bread’? Unlikely Indifferent Very likely 1--------2--------3--------4--------5--------6--------7--------8--------9--------10 22. How interested are you in our special designed birthday cake? Would you buy it? Not interested Indifferent Very interested 1--------2--------3--------4--------5--------6--------7--------8--------9--------10 Promotion Questions 23. Would you like to receive our promotion information by email? ○ Yes ○ No 24. Will you spend time to check our promotion information on our official website? ○ Yes ○ No Distribution Questions This section of the questionnaire is to determine what distribution methods customers would prefer Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 33 Based on Sample Marketing Documents by 280Group.com
  • 37. Krannert School of Management Business Management 324 25. What area do you prefer our bakery store to be opened? ¡ Close to Purdue housing ( Purdue West ) ¡ Close to campus ( North Chauncey ) ¡ Close to Purdue Rec Sports (Co-rec) 26. How do you think we should display our products? ¡ Self-service counter in which products are shown in trays. ¡ Service Counter in which products are shown in curved glass bakery displays. Thank you for your cooperation. Results: (Cross Tabulation) Demographic Questions of 25 participants used to segment Quadrant characteristics gender(male=1female=0) oc cupation(s tudent=1resident=0) foodSPENDING(<10=0,10-24= job(y es =1no=0) age(<18=0.18-25=1,26-50=2,50+=3) Campus(yes =1no= 0 0 1 1 3 0 0 0 1 2 3 0 0 0 1 2 3 0 0 0 1 1 3 0 0 1 0 0 1 0 0 1 0 1 1 1 0 1 1 1 2 1 0 1 1 1 2 0 1 1 0 1 3 1 1 1 0 1 1 0 1 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 3 1 0 1 0 1 1 1 0 1 0 1 2 1 0 1 0 1 2 0 0 1 0 1 0 0 1 1 0 1 1 1 1 1 0 1 3 1 1 1 0 1 3 1 0 1 1 1 2 1 0 1 0 1 2 1 0 1 1 1 2 1 0 1 1 1 2 0 1 1 0 1 3 1 0.36 0.84 0.4 1.04 2 0.56 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 34 Based on Sample Marketing Documents by 280Group.com
  • 38. Krannert School of Management Business Management 324 The Segmenting quadrants and their respective percents of our target market HIGHhigh HIGHlow LOW high LOW low SEGMENT 0 1 0 0 2 0 1 0 0 2 0 1 0 0 2 0 0 0 1 4 0 1 0 0 2 0 1 0 0 2 1 0 0 0 1 1 0 0 0 1 0 1 0 0 2 0 1 0 0 2 0 1 0 0 2 0 0 0 1 4 1 0 0 0 1 1 0 0 0 1 0 1 0 0 2 0 1 0 0 2 0 1 0 0 2 0 1 0 0 2 1 0 0 0 1 0 1 0 0 2 0 1 0 0 2 1 0 0 0 1 1 0 0 0 1 1 0 0 0 1 1 0 0 0 1 0.36 0.56 0 0.08 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 35 Based on Sample Marketing Documents by 280Group.com
  • 39. Krannert School of Management Business Management 324 Template Prepared by Dr. Chad R. Allred, 2007. Rev. 1.001 36 Based on Sample Marketing Documents by 280Group.com